However, they operate in different sectors and have distinct business models.
The Companies
ACI Worldwide is a global provider of payment solutions and digital transformation services. The company offers a range of products and services, including payment processing, digital banking, and cybersecurity solutions. ACI Worldwide serves over 5,000 financial institutions and 20,000 merchants across the globe. Kingsoft Cloud, on the other hand, is a Chinese cloud computing and software company. The company provides a range of cloud-based services, including computing, storage, and software as a service (SaaS). Kingsoft Cloud is listed on the NASDAQ stock exchange under the ticker symbol KC.
Key Differences
Business Models
ACI Worldwide generates revenue primarily through the sale of its payment processing and digital transformation services. The company offers a range of pricing models, including subscription-based and transaction-based pricing.
Market.
The Volatility of Stock Prices: A Comparative Analysis of ACI Worldwide and Kingsoft Cloud
Understanding Beta
Beta is a statistical measure that helps investors understand the volatility of a stock’s price relative to the overall market. It is calculated by dividing the standard deviation of a stock’s returns by the standard deviation of the market’s returns. A beta of 1 indicates that a stock’s price moves in line with the market, while a beta greater than 1 indicates that the stock is more volatile than the market.
ACI Worldwide: A Beta of 1.19
ACI Worldwide, a leading provider of digital transformation solutions, has a beta of 1.19. This means that its share price is 19% more volatile than the S&P 500. To put this into perspective, if the S&P 500 experiences a 10% decline, ACI Worldwide’s share price is likely to decline by 1.9% (10% x 1.19). This increased volatility can make it more challenging for investors to predict the stock’s price movements.
Kingsoft Cloud: A Beta of 2.2
Kingsoft Cloud, a Chinese cloud computing company, has a beta of 2.2. This means that its share price is 100% more volatile than the U.S.
Institutional investors shape the market with their large investments.
However, institutional ownership is not the only factor to consider when evaluating a stock’s potential for growth. Other factors such as the company’s financial health, competitive position, and industry trends can also play a significant role in determining a stock’s long-term performance.
Institutional Ownership: A Key Indicator of Stock Performance
Understanding the Significance of Institutional Ownership
Institutional investors, such as pension funds, endowments, and hedge funds, play a crucial role in shaping the stock market.
About Kingsoft Cloud (Get Free Report) Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company’s products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People’s Republic of China.
